Video: How high gas prices will impact the economy this Easter

posted at 6:00 pm on April 23, 2011 by Ed Morrissey

Average gas prices at the pump have skyrocketed (“necessarily”?) in the past month, going up more than 30 cents per gallon. In a period where wage growth has been flat or negative, the sudden shock of higher fuel prices and their related inflation in food prices have put a big dent in the disposable income of many households. CBS News takes a look at how that will impact Easter holiday plans this weekend in this video clip showing plenty of second thoughts as people fill their tanks at the new prices. If people choose to stay home rather than travel, the consumer economy will take a significant hit:

Barack Obama is “taking action”? Er, not really. He’s calling a task force together to look for abuse, which will do exactly nothing to lower gasoline prices. We need to expand domestic production and refining capacity in order to address the fundamentals of the instability of the fuel market. Until we do, we will continue to see prices fluctuate based on political unrest in producing countries, greater demand from developing industrial nations like China and India, and the lack of will to find our own resources and keep our own dollars in our own economy.

Have the gas prices changed your holiday plans this Easter holiday or spring break? Take the poll:

Just once, I’d like the Pretender-in-chief to ‘help us understand… what isnyour definition of subsidies to the oil companies.’
What golden turds would be on tape, from this clueless idjit !!

onlineanalyst on April 23, 2011 at 9:52 PM

Would make an excellent debate point for the 2012 elections…. GOP are you paying attention.

I would love to see some ads with Dr. Chu talking about how he thinks the cost of gas should be the same as it is in Europe. If the Secty of Energy thinks gas prices are too low at $4 per gallon, why does the One need to investigate price gouging???

you mean like FDr got blamed for the “Hover’s depression” the liberals will call this Bush’s depression 70 years from now

unseen on April 23, 2011 at 9:08 PM

There won’t be any Liberals 70 years from now, or rather, none that will admit it. Very few are going to survive the coming purge, those that do are going to have a major change of heart not to mention ideology.

Barry Soetoro will go down in history as the destroyer, and one of the things he will have destroyed is the Democrat Party and the bulk of the Left here in the USA, of course there will be great damage to the rest of us as well.

Going to church, but staying home otherwise. I heard and seen all kinds of oil and econ experts talk about the rise and betting on how high it will go but not one has given the real reason. It’s inflation and the strength of the dollar. It takes a lot more of them to do anything and buying gas is the most glaring.

In a period where wage growth has been flat or negative, the sudden shock of higher fuel prices and their related inflation in food prices have put a big dent in the disposable income of many households.

“Disposable” income? That’s been gone for two years. Now we’re into the “indispensable” income.

when Bush was president and oil prices went up there were great gyrations from the right to explain why it was not really his fault and conspiracy theories in abundance from the left as to why it was.
Now that Obama is president the shoe is on the other foot and the hyperpartisans stir up the echo chambers with the same tactics they abhorred in years past.

But it is kind of cute to see how many tingles up the leg each piece of bad news gives to the hyperpartisans on the right. People out of work? Awesome! better chance to see Obama lose re-election. Gas prices causing major pain to working families? Superlee dooper! one more reason to see “the one” get defeated.

when Bush was president and oil prices went up there were great gyrations from the right to explain why it was not really his fault and conspiracy theories in abundance from the left as to why it was.
Now that Obama is president the shoe is on the other foot and the hyperpartisans stir up the echo chambers with the same tactics they abhorred in years past.

But it is kind of cute to see how many tingles up the leg each piece of bad news gives to the hyperpartisans on the right. People out of work? Awesome! better chance to see Obama lose re-election. Gas prices causing major pain to working families? Superlee dooper! one more reason to see “the one” get defeated.

All too predictable and all too pathetic…

Bradky on April 24, 2011 at 9:53 AM

No, the only thing “All too predictable and all too pathetic” is your willful ignorance of the one major difference in the two scenarios.

When the gas prices went up under Bush and the Left started blaming him for it, they controlled the Media and the Message, and the Media was all too willing to parrot their talking points and also blame Bush.

This time around, they’re blaming everyone BUT the same guy they blamed earlier-the President.

Funny how in just a few years ago, it was all Bush’s fault in the media, but in 2011 not a peep from them about it possible being O’bama’s fault.

Democrats blame Bush for high gas prices

WASHINGTON (AP) — Consumer gasoline prices continue to soar as the Bush administration places too much emphasis on drilling reserves and not enough on alternative fuels, Democrats said Saturday.

In his party’s weekly radio address, Sen. Bill Nelson of Florida noted that Brazil has announced it will achieve energy independence this year, something the United States has sought since the country’s first oil crisis in the 1970s.

“In Brazil, drivers are filling up their cars with ethanol instead of gasoline,” Nelson said. “And today in America, President Bush says, ‘We have a serious problem. America is addicted to oil.'”

Nelson said Bush acknowledges the problem but refuses to enact policies to address the issue.

“The administration’s emphasis is on drilling, a strategy many experts say won’t make a dent in the U.S. oil problem,” he said.

Nelson noted how the United States has just 3% of the world’s oil reserves yet consumes 25% of oil production.

Committee Chairman Jay Ramras, R-Fairbanks, said the committee’s findings are based on intuition after spending four months researching and gathering testimony on the issue.

“It seems that in order for refineries to maintain their competitive position in the global jet aviation market, they have to shift costs on to a much smaller more fragile consumer retail gasoline market,” Ramras said.

“We don’t think there’s any illegal activity going on. We think it has to do with two very distinct marketplaces,” he said.

I swear Oblah-blah is taking notes off Ramras, who hates Palin AND owns stock in both oil AND gas AND the TAP AND doesn’t seem to see anyting wrong with it. He is also a day-trader. hmmmmmmmmmmmmmmmmmmmmmmmmmmmm

Yeah I have seen this before and Alaska got screwed 2 years ago. Now it seems it is the Nations turn.

Many conservatives have called for a coherent, demand based (realistic) energy policy for years… some going back into the Carter administration. Especially those conservatives who support free-market capitalism and a stronger America.

Rather, it’s the reality-challenged environuts and the redistributionists who hamper a sensible policy toward growth in our energy sector.

But it is kind of cute to see how many tingles up the leg each piece of bad news gives to the hyperpartisans on the

right. People out of work? Awesome! better chance to see Obama lose re-election. Gas prices causing major pain to working families? Superlee dooper! one more reason to see “the one” get defeated.

All too predictable and all too pathetic…

Bradky on April 24, 2011 at 9:53 AM

I don’t know where you see that desire for fellow Americans to suffer at Hot Air. These folks want to help people directly by helping them help themselves and believe that charity is personal and begins in the home. Over at the Daily Kos where the rich must be punished by higher capital gains taxes even if it lowers government revenues; all charity is from the government and has nothing to do with any personal responsibility either by the giver or the receiver of the charity.

What makes it worse is, your gas would be cheaper in an unfettered marketplace; you are closer to a source of gas than I am. If it were extracted and refined in an open environment, you’d pay less than average, rather than more.

KW64 on April 24, 2011 at 2:34 PM
massrighty on April 24, 2011 at 2:33 PM
Del Dolemonte on April 24, 2011 at 12:28 PM
GarandFan on April 24, 2011 at 11:45 AM

Own your positions or quit your whining. It makes you happy to crow about the high prices of gas because it might mean bad electoral news for Obama. Period dot.
You are too obtuse to see yourself in the same mirror the lefties were holding up when bush was pres.

Own your positions or quit your whining. It makes you happy to crow about the high prices of gas because it might mean bad electoral news for Obama. Period dot.
You are too obtuse to see yourself in the same mirror the lefties were holding up when bush was pres.

Bradky on April 24, 2011 at 5:03 PM

That is exactly what the Obama admin should do. Obama and his Secty of Energy want higher gas prices to force us to “conserve”. Steven Chu has said that we really should be paying what the Europeans do for gas. Obama is the one who said under his plan for cap and trade the cost of energy would necessarily skyrocket. Obama is the one who says that if you can’t afford a gallon of gas to buy a new car. It is the Obama admin (the so-called followers of science) who not only ignored it’s own scientists but attempted to delete/obfuscate their reccomendations about drilling in the Gulf. (They said it was unnecessary and potentially unsafe to shut down drilling.). The media has given the Obama admin a complete pass on the price of gas and how his policies are contributing to it. I haven’t seen the video of Dr. Chu on the news lately, have you???

Obama is the one who should look in the mirror and be honest with the American people about his beliefs that we should pay $8 per gallon for gas. He needs to sell his case to the people and let us choose.

upinak on April 24, 2011 at 2:39 PM
What makes it worse is, your gas would be cheaper in an unfettered marketplace; you are closer to a source of gas than I am. If it were extracted and refined in an open environment, you’d pay less than average, rather than more.

massrighty on April 24, 2011 at 3:19 PM

Our gas used to be cheaper in Anchorage than in Seattle. Don’t know what happened but it isn’t anymore.

I was doing some digging into Charles Krauthammer, learned some interesting things, I admire the guy. It seems he’s all for energy independance, nukes, drilling ANWR, etc., THE DEALBREAKER THOUGH IS HE THINKS WE SHOULD HAVE MUCH HIGHER TAXES ON OIL TO FORCE US TO CONSERVE, and he’s consistently been for this over a long period of time. I believe cheap energy means freedom and prosperity, not just for America, but for the world, by the way, I was born and raised on a farm and have an idea how the price of diesel and fertiliser impacts the price of food, which seems to have kicked off the turmoil in the muslim world .

We were hoping to take our kids up to Glacier Park in Montana for our summer vacation, but with gas possibly doubling what it was last year, a long drive across the country and into the mountains is looking like a moneypit excursion.

Own your positions or quit your whining. It makes you happy to crow about the high prices of gas because it might mean bad electoral news for Obama. Period dot.
You are too obtuse to see yourself in the same mirror the lefties were holding up when bush was pres.

Bradky on April 24, 2011 at 5:03 PM

Again, your argument is based on the weak tea of “I’m Bradky, and I say it’s true, so it must be!”

I’ve argued extensively here, and for damn near 20 years, for a broad, demand based energy policy. Painting me as someone who simply wants to attack the current administration is foolish, based on the fact that I’ve pushed the same 5 point energy plan my whole adult life.

Back up your specious arguments, or stop making them; they’re tiresome.

Saw some long winded pro electric car show at my sister’s today… As the story goes… these are the beginnings of a new age in auto transportation. They skimmed so lightly over the negatives and stubborn problems with actually powering electric cars that the show was pretty much like an infomercial for a product that is 3 times the cost it should be, and 10 times the trouble of the alternative…
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Kinda like Obama.
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Never forget… If you hear a liberal even dare to mention the price at the pump… Beat them over the head with the facts… Obama is pro-higher gas prices. High gas prices hurt working poor families more than it does anyone else. Obama does not care about the working poor… or their children.
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You are too obtuse to see yourself in the same mirror the lefties were holding up when bush was pres.

Bradky on April 24, 2011 at 5:03 PM

But, I was attacking Bush on his complete lack of an energy policy. So were lots of other conservatives. Liberals want to eliminate fossil fuels. I want more of them. How does that make our positions the same?

This is a strange analogy, but it does work…
Years ago in Baja, Mexico allowed (with paid permits) for the Japanese to come in a fish. They literally stripped Baja of bait, and destroyed the fishing industry. An industry that brought American tourists. They soon found out the impact of not having tourists come and visit and fish a little, but spend a lot.
So it is with gas prices…sounds good to a liberal for people not to drive and stay home…but…hotels, golf resorts, museums, hot dog stands, school activities, shopping, car washing, gardening, miniature golfing, regular golfing, shopping across town, less home repairs, fewer cars be bought and sold.
The economy suffers across the spectrum, and very little at the gas pump. All the business taxes needed for a city to operate, a county, a state, and the feds to operate are diminished. It is compounded by an x factor, far beyond someone just not driving and buying gas.
High gas prices is a disaster to the total economy, the suffering at the pump is minuscule compared to the overall affect of what is happening in the economic downstream.

Own your positions or quit your whining. It makes you happy to crow about the high prices of gas because it might mean bad electoral news for Obama. Period dot.
You are too obtuse to see yourself in the same mirror the lefties were holding up when bush was pres.

Bradky on April 24, 2011 at 5:03 PM

You are too caught up in talking points to remember three major issue with President Bush (from conservatives).
1. Lack of border control
2. Over spending, and not using the veto
3. Not taking the energy problem seriously
Multiple articles, and debate, and anger at him not producing on those three subjects.
If you don’t remember those debates than you are either very, very, ill informed, or you are just sprouting you basic same talking points without regard to historical facts…but I go for door number three, you embrace both.

I traveled for Easter… we drove 900 miles both ways, 10-11 days. It was still much cheaper than flying. Plus driving is more flexible and we almost finished a 24 hour book. I hate when there is book left at the end of the trip! Now we have to find another short trip to finish the book!

We travel very well in a car… if we have to travel with other people we go nuts, they have to stop everytime we just get settled in… very frustrating. No wonder they fly.

We have a Yukon… it was about $100 to fill the tank twice both ways for a total of something less than $400, we had enough gas to go where we wanted during the trip. There are four of us so find me a plane ticket and rental car for that price for four people.

As the global economy kicked in and countries such as China and India needed more automobiles, the demand for oil grew around the world. As Americans also continued to drive in larger numbers and the population also grew, demand for gasoline quickly outstripped supply. Oil companies couldn’t keep up so crude oil prices rose to above $1.50 in March of 2000. Just a year previously, gas prices were less than $1 for the last time in American history.

July 2008: Gas prices spiked to more than $4 per gallon

The global economy grew and gas prices spiked at $4.17 in July 2008, the highest nationwide average ever, according to the Energy Information Administration. Oil imports were also at an all-time high at around 10 million barrels per day. Gas prices are currently approaching those levels with a national average of $3.74.

Had to insert this here, because the dishonest author omitted it by malintent